Argonaut Gold Provides Update for its La Colorada Mine

Toronto, Ontario – (May 17, 2018) Argonaut Gold Inc. (TSX: AR) (the “Company”, “Argonaut Gold” or “Argonaut”) reports that the Judiciary court hearing with respect to the Company’s explosives permit for its La Colorada mine (see press releases dated April 12, 2018, April 17, 2018 and April 27, 2018) has been rescheduled to June 4, 2018.

In order to keep all legal options available and to protect the Company in the event the Judiciary court process is not completed in a timely manner, the Company also reports that it appealed the Judiciary court’s original decision to temporarily suspend the explosives permit to the Collegiate Tribunal (an arm of the State Supreme court that is tasked with overseeing the Judiciary court). This appeal requests the Collegiate Tribunal re-instates the explosives permit so that the Company can blast material while the Judiciary legal process continues.

The Company is pursuing both the Judiciary legal process and the Collegiate Tribunal appeal process and anticipates it has material sufficient to allow these processes to run their course.

With free-dig material in the pit and ore stockpiles, the Company estimates it has sufficient ore to continue operations until the end of July at its budgeted crushing throughput level of 12,000 tonnes per day. The Company has thoroughly reviewed its 2018 consolidated production forecast and, under the assumption the explosive permit is re-instated by August 1, 2018, it re-iterates its consolidated production guidance of between 165,000 and 180,000 gold equivalent ounces1.

The Company continues to believe the legal action brought against the Secretary of National Defense and the Municipality of La Colorada, with the Company as a party of interest, is without merit. The Company is reassured by the support it has received, including that from members of the local La Colorada and extended Sonora community. The Company is taking every possible legal measure to prove its case and to re-activate blasting activities at its La Colorada mine as soon as possible.

1Gold equivalent ounces are based on a conversion ratio of 70:1 for silver to gold.

About Argonaut Gold

Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production activities. Its primary assets are the production stage El Castillo mine and San Agustin mine, which together form the El Castillo Complex in Durango, Mexico and the production stage La Colorada mine in Sonora, Mexico. Advanced exploration stage projects include the San Antonio project in Baja California Sur, Mexico, the Cerro del Gallo project in Guanajuato, Mexico and the Magino project in Ontario, Canada. The Company also has several exploration stage projects, all of which are located in North America.